RBI Doubles the NRI Equity Investment Limit to 10% From 5 June 2026

On 5 June 2026 the Reserve Bank of India raised the limit a single NRI or OCI can hold in one listed Indian company from 5% to 10% of paid-up capital, and lifted the combined cap for all overseas individual investors in a company from 10% to 24%. This is a stock-market rule. It does not change how you buy, hold, or repatriate India property.

The change gets forwarded in NRI groups next to messages about flats and rent, so it is worth saying plainly where it lands and where it stops.

What changed

In its Statement on Developmental and Regulatory Policies, released on 5 June 2026 alongside the monetary policy, the RBI liberalised the Portfolio Investment Scheme (PIS) route that NRIs and OCIs use to buy listed Indian shares:

Governor Sanjay Malhotra also widened the Fully Accessible Route to include all new 15-year, 30-year and 40-year government securities, a separate measure aimed at foreign participation in government debt.

The fine print

These are ceilings, not a fresh product. They set how much of a company the diaspora can own through the PIS route, which runs on an NRE or NRO bank account, a PIS permission letter from your designated bank, and linked demat and trading accounts. Intraday trading stays barred on this route.

The higher limits are being operationalised through an amendment to the Foreign Exchange Management (Non-Debt Instruments) Rules. As of the 5 June announcement, the full amendment was pending gazette notification. So the direction is set, the paperwork follows.

What it means if you own India property

Nothing on the property side. Equity bought under the PIS route and immovable property are two separate boxes under FEMA, with separate accounts and separate rules:

If you were counting on this to loosen a property rule, it does not. It is a portfolio-investment change, and it is generous on that front.

FAQ

What is the new NRI limit in a single listed Indian company? From 5 June 2026, one NRI or OCI can hold up to 10% of a company's paid-up capital, up from 5%. All overseas individual investors combined can hold up to 24%, up from 10%.

Does this change how much India property I can own? No. This is a listed-equity rule under the Portfolio Investment Scheme. Property purchase and repatriation run on separate FEMA rules and separate accounts, and they are unchanged.

Is the higher limit already in force? The RBI announced it on 5 June 2026. It is being operationalised through an amendment to the FEMA (Non-Debt Instruments) Rules, which was pending gazette notification as of that date. Confirm the notified position with your bank before you act.

Keeping your property side clean while you invest?

66 MG Road handles the India property half for NRI and OCI owners: the NRE and NRO plumbing, the sale, and the repatriation, kept separate from your PIS investing. We operate in Mumbai, Pune, Bangalore, Hyderabad, Chennai, and Gurgaon. See repatriating sale proceeds or request a proposal.

66 MG Road newsdesk

Sources